Consultation India - Pune, Mumbai Real Estate/ Properties Investment, Property Management Services

Source: The Hindu Business Line Real estate industry is the second largest provider of employment after agriculture. We urge the Finance Minister to recognise this and accord the same consideration and treatment as other industries like software. Service tax should be reduced along with the modification of entire income tax structure for real estate industry. The real estate industry has matured significantly in the last few years. Hence, the Government should consider introduction of sectoral concepts such as rental housing, and real estate investment trusts (REITs) to allow housing more easy and affordable for common man along with raising more funds. Such developments proved their worth in number of other industries. M.A. Vakil, CMD, Vakil Housing Development Corporation, Bangalore

MUMBAI: Real estate firm Anant Raj Industries Ltd said on Friday it has priced its global depositary receipts (GDRs) at $7.494 each. Each GDR represents one equity share of the company. It said the company has received commitments for $151 million. The GDRs will be listed on Luxembourg Stock Exchange.

Source: 18 Feb 2008 The Financial Express ‘Budget Homes’ are gaining popularity among builders and middle class has finally begun to dream. India’s urban population is growing at the rate of 2.5% annually. By 2011, close to 41% of India’s total population will be living in the urban areas. This has lead to increasing demand for budget homes. The country is witnessing an average addition of 2.3 billion sq ft of residential area each year, which means that 2 million houses of 1,175 sq ft each will be built every year. Industry experts believe that builders should plan keeping a certain clientele in mind. For such houses, they need to concentrate on volumes rather than ‘limited editions’ and price homes in a manner so that the lower or middle income segments can afford them, depending on target clientele. According to Mr. Anuj Puri, Chairman and Country Head of Hoems LaSalle Meghraj, ‘All major cities have a ‘budget home’ segment. Most of the activity would be in the sub...

Source: DNA Analysts say the move makes sense as it is already fairly diversified Mithun Roy. Mumbai Textile major KSL and Industries Ltd (KSL), promoted by Saurabh Kumar Tay-al, is betting big on its realty business. A banker close to the development said the Rs 800 crore company plans to demerge its realty business into a separate company and list it on the bourses. The rising rupee, which has hit exporters hard, seems to have taken a toll on its core business - textiles. Hence the focus on realty play in the next few years, said the banker. Analysts say the demerger makes sense considering the company has diversified into the realty business in a big way Tayal told DNA Money, "We are analysing all possible growth areas including hiving off and thereafter listing on bourses, but not immediately A separate team is looking into it and once the internal report comes, we will take the final call and subsequently inform the exchanges." Going by industry sources, KSL has started ...

Source: Business Standard RAGHAVENDRA KAMATH Mumbai, 26 February A fter Biyani's Future Group. BSE-listed stationery maker Today's Writing Products is entering into the retail of office supplies and stationery products. Today's is planning to open 500 stores under the brand name OFFIX in the next three years. The company has earmarked nearly Rs 160 crore for the venture and plans a mix of company-owned and franchises for the same. The company has floated a subsidiary Today's Stationery Mart for the venture. Today's is also setting up six warehouses, in the range of 70,000 to 80,000 sq feet, to cater to the operations of the company across the country. Last year, Future Office, the office products venture of Future group, entered into a joint venture with $16 billion US company Staples to form Staples Future Office Products in the country's $ 10 billion office products' market, which is dominated by city-specific unorganised players. According to estimates, t...

Source: The Asian Age By MAYUR SHEKHAR JHA New Delhi, Feb. 26: Indian Railways is getting real about estate. Lalu Yadav wants to put up for commercial use his department's surplus land assets. In 2008-09, the department plans to invest about Rs 4,000 crore in public private partnerships (PPP) for commercial development. A staggering 43,000 hectares of land, no less, across the country has already been identified for the purpose. "It makes good business sense for both the Railways, as well as the private developer. Often, this surplus land is around the main stations, bang in the heart of a city, and thus, commands huge value," says DLF group executive director Rajeev Talwar. India's largest real estate developer plans to bid for PPP projects mainly on the Delhi-Mumbai freight corridor. "At present, we are bidding for the land around New Delhi railway station. We would make use of opportunities as and when they arise," Mr Talwar said. The other real estate gi...

Source: The Economic Times Our Bureau MUmbaI BOOMING Islamic finance is likely to acquire assets in India through Islamic Real Estate Investment Trusts. According to a report by Moody's although IREITs are not in existence in India, the draft IREIT guidelines issued by Sebi may pave the way for these funds into the Indian property market. With high oil prices funnelling billions of dollars to the Middle East, there is an increased demands for Sharia-compliant finance products. According to Moody's, Islamic finance is now estimated to be worth around $700 billion globally while Sukuk, or Islamic bonds, are the fastest-growing segment, with volumes worldwide reaching $97.3 billion till 2007. Moody's pointed out that the property boom in the Middle East makes IREITs a much-needed product and a useful investment tool, given the existing favourable investment and regulation environment. Moreover, there has been a growing appetite for the real estate asset class among regional in...

Souce: Economic Times MUMBAI: Real estate firm Housing Development & Infrastructure (HDIL) on Wednesday said the private equity firm DE Shaw is investing $250 million in Mack Star Marketing, an HDIL group company. Mack Star Marketing holds development rights for a 54,000-metre commercial complex being constructed in Andheri. Last week, HDIL had transferred its development rights to this complex to Mack Star for Rs 900 crore. DE Shaw’s investment is in the form of equity and debt. HDIL managing director Sarang Wadhawan said DE Shaw will hold a minority stake, but declined to give details. The investment comes at a turbulent time for India’s capital and real estate markets. The steep meltdown in January and the withdrawal of Emaar MGF’s IPO in February rattled real estate firms who rely on equity to fund their expansion projects. PE money, which was always sought after, has become attractive now, but funds are being very selective and managements are also being forced to offer realis...

Source: Economic Times MUMBAI: Realty sector hopes that Finance Minister P Chidambaram will provide tax breaks on REITs in line with the Mutual Funds while he unveils the Union Budget on February 29. Market regulator SEBI has already come out with a draft guideline to allow Real Estate Investment Trusts (REITs), but there was no mention on the tax breaks that is imperative to popularise the REIT market to start with like any other global market. "I believe that income of the investors under REIT should not be taxed, like in the US. This will attract investors to further invest in REITs," Ansal API Chairman Sushil Ansal told PTI. The country needs to introduce REITs as soon as possible, he said adding that this would help to bring in funds to the sector. "All the benefits that the Mutual Fund industry enjoys should be made available to REITs as well. Long-term capital gains on sale of REIT units could be made tax exempt and short-term capital gains could be taxed at 10 pe...

Source: The Economic Times MUMBAI: The booming realty sector wants a status equal to telecom and aviation with amendments in the foreign direct investment guidelines to boost construction and infrastructure development in the country. "The realty sector is growing at a dizzying pace of almost 30 per cent each year. The bulk of construction activity - 80 per cent - is dedicated to housing, while the rest is commercial, including offices, malls, hotels and hospitals," said Akruti City Ltd Managing Director Vimal Shah. The double-digit growth in this sector is mainly on account of offshoring of business including high-end technology consulting, and improved techniques employed here. "In order to give a further boost to this sunrise sector and make mass urban housing affordable, tax exemptions are necessary in the next union budget. Then, property prices can come down by up to 20 per cent, bringing more people into the self-owned housing net, and enable the industry grow in ...

Source: The New Indian Express New Delhi, Feb 25: The government today approved 10 more proposals for Special Economic Zones, including those by Videocon Realty and Mahindra Worldcity. The Board of . Approval, chaired by Commerce Secretary Gopal Pillai, met here and took up 14 SEZ proposals, including three in-principle conversions to formal approval. Formal approval was granted to 103-hectare transport engineering goods zone by State Industries Promotion Corporation of Tamil Nadu Ltd (SIP; COT) in Tamil Nadu as well as to a mineral-based products SEZ in Madhya Pradesh by Madhya Pradesh Audyogik Kendra Vikas Ltd. Wardha Power Company's 102-hectare SEZ in Maharashtra and Anant Raj Industries IT/ITES zone in Haryana was also given formal approval. Mahindra Worldcity' s (Jaipur) 103-hectare handicraft and 104-hectare light engineering zones in Rajasthan were also approved. The in-principle nod to SIP-COT's 103-hectare automobile/automobile parts zone in Tamil Nadu and Videocon...

Souce: Economic Times of India. NEW DELHI: Real estate firm Alchemist Realty Ltd will invest over Rs 5,000 crore in the next 7-10 years for developing a land bank of 10,600 acres. "Currently, we have a land bank of 10,600 acres across the country, mainly in the northern states. We plan to invest about Rs 5,000 crore in the next 7-10 years to develop different projects," Alchemist Realty Ltd CEO Pran Khanna told PTI on the sidelines of Technopak Retail Summit here. The company plans to develop integrated townships, resorts, hotels and restaurants on its land bank, he said. Alchemist Realty proposes to open a chain of speciality restaurants in northern India under 'Red Cap'" brand. "At first, we will open 20 restaurants in two years in northern states. Excluding land and lease amount, we have earmarked an investment of about Rs 15 crore for setting up the outlets," he said, adding the eating joints would operate under franchisees as well as stand-alone ba...

Source: Economic Times of India. BANGALORE: Reliance Industries is in advanced talks with the New York-based Vornado Realty Trust, one of the world’s top five real estate asset managers, to float a $1-billion plus fund. The proposed fund will acquire and manage properties, mainly in the retail space, across India. People familiar with the development said RIL and the New York Stock Exchange-listed real estate investment trust (REIT) were discussing the possibility of an equal joint venture. Vornado, which has a market capitalisation of nearly $14 billion, owns and manages over 116 million sq ft of realty assets in the US with significant concentration in New York and Washington districts. The sources said while no definitive agreement is in place yet, both parties have made substantial progress in negotiations. RIL spokesperson declined to comment on the development. It is believed that the joint venture is likely to manage real estate for RIL’s rapidly-expanding retail arm Reliance Re...

Source: The Financial Express Damac Properties, the largest private sector developer in the Middle East, has firmed up plans to invest over $5 billion (Rs 19,700 crore) over the next three to five years in In-dia's burgeoning real estate market. The company has already initiated talks with Indian companies for a joint venture to pursue its investment plan. In order to drum up interest in the group and its iconic projects, Damac will hold roadshows across India. Mumbai hosts the roadshow between February 14 and 20. Damac, which plans to build residences, offices and shops in Mumbai, New Delhi, Hyderabad and Bangalore, will fund its proposed investments in India through internal resources. The company also hopes to attract Indian investors to its projects in the Middle East. Hussain Sajwani, founder & chairman, Damac Holding, said: "Through these roadshows, we also aim to educate our audience in India about our brand personality and the quality of our projects. The Indian re...

16 Feb, 2008, 0048 hrs IST,Nevin John, TNN, Source Economic Times of India. MUMBAI: The US-based hospitality and real estate fund Walton Street Capital (WSC) has decided to invest Rs 1,000 crore in the booming Indian real estate market in 2008. It has already tied up with property developers for investing Rs 600 crore at the project level. These investments will be made in special purpose vehicles (SPV) floated specially to implement projects. The fund is in talks with three Indian developers for the remaining investments, which is expected in a couple of months, said WSC managing director Sourav Goswami. Last year, the $13 billion Chicago-based WSC invested about Rs 800 crore in several SPVs, including 20% in Shriram Properties. The fund has invested in retail malls, office buildings, housing and hospitality. Though the real estate sector seems less attractive for investments because of the high interest rates and fall in sales, Mr Goswami said India’s growth story will continue like ...

NEW DELHI: Parsvnath Developers Ltd and Indiabulls Real Estate have come together to bid for ten prime location plots being offered by the Indian Railways for commercial development across various cities. The two companies have already submitted the request for qualification (RFQ) for all the ten plots offered by Rail Land Development Authority (RLDA) in the first phase. According to sources, Parsvnath and IBREL have entered into an understanding for the submission and bidding for the land offered by the Railway Ministry through RLDA and under the agreement, the RFQ for 10 locations have been submitted. The objective under the agreement would be to design, develop, finance and to market the developed property, they said. The 10 sites which have been selected for commercial development in the first phase are located in Delhi, Kanpur, Gwalior, Visakhapatnam, Kolkata, and Bangalore. When contacted, a spokesperson at Parsvnath confirmed the development, but declined to share any further de...

HONG KONG: India could follow other Asian countries this year in creating a market for real estate investment trusts (REITs), making it easier for investors to buy into the country's sparkling new office blocks and shopping malls. The move would encourage foreign property funds, which are keen to join India's construction boom but are not allowed to own finished buildings. REITs or domestic funds could buy the assets they develop, offering them an easier way to exit the projects and take profits on their investments. In December, market regulator Securities and Exchange Board of India (SEBI) issued draft guidelines for REITs, which pay most of the rent from their buildings to investors as dividends. But people in the industry say unless tax breaks are also offering by the government in its upcoming budget, a local REIT market would be a non starter. The SEBI proposal contained no mention of the kind of tax breaks that kick-started other property trust markets, but it could be f...

Real estate has always been about location . But over the years, it's becoming more about reputation . Driven by positive growth in the economy, real estate in India is booming. Year 2006 started on a promising note when the Government of India provided fresh impetus to the construction and development sector by allowing 100% foreign direct investment (FDI) under the 'automatic route' in order to spur investment in the vital infrastructure sector. The relaxation of the FDI ceiling saw big names like Dubai-based Emmar Properties — the largest listed real estate developer in the world — joining hands with the Delhi-based MGF Developments to announce India's largest FDI in the realty sector , amounting to over $500 million in projects with a capital outlay of $4 billion. Groups showing interest in India include insurance company American International Group (AIG), High Point Rendel of the UK, Edaw-US , Japan's Kikken Sekkel, Lee Kim Tah Holdings and Cesma International...

Ajit Bhagnani, a chartered accountant from London has bought a house in Kondhwa and also commercial place in Sohrab Hall. Amit Choudhari, also from England, has invested in an entire building in Kharadi. Similarly, Rana Sengupta from South Africa has bought three flats in areas like Viman Nagar, Kalyani Nagar and Kharadi. There are many like Bhagonani, Choudhari and Sengupta, who are parking their money in Pune's flourishing real estate industry. Experts point out that in the last one-year , several Non Resident Indians (NRIs) have invested in multiple properties - commercial as well as residential - in Pune. This trend is attributed to "reasonably good return on investments" and the "growth of the IT sector" in the city. Also, owning a property in the Motherland is one of the guiding factors . But the fact that Pune is a safe parking lot for their money, rules over all the other factors. Take the case of NRI Ramesh Kriplani, who has been living in New Jersey fo...

NEW DELHI: Cushman & Wakefield has identified 17 new corridors in India as strong investment destinations for investors with different risk appe-tites. According to India Gaining Momentum report, the real estate investment report 2007 prepared by Cushman & Wakefield along with Global Real Estate Institute (GRI), Hinjewadi, Manesar, GST near Chennai airport, Sriperembudur, Shamshabad, Devanahalli, Greater Noida, Panvel and Virar, Rajarhat, Thane, Kokapet (Hyderabad), Bidadi (Karnataka), Chakan, Kharadi (Pune) Bantala and Tumkur Road are the 17 corridors that reflect high investment potential. "As India enters the next phase of real estate growth, the exploration of suburban and peripheral developments of major cities as cost saving and risk diversification measures are emerging as vital initiators for analysing the potential investment opportunity within these emerging corridors," the report said. "Overburdened infrastructure, rising real estate and operational co...